A little more on Netflix: Reed Hastings (NFLX) states Arrested Development yielded "a small but...
Jul 22 2013, 16:36 ET
A little more on Netflix: Reed Hastings (NFLX) states Arrested Development yielded "a small but noticeable bump in membership" when launched. He adds "other great shows don’t have that noticeable effect in their first season." Better-than-expected margin improvement is attributed to content deal timings and (to a lesser extent) "spending less on content than expected." However, Hastings cautions Hulu's cash infusion could lead to higher content prices. Several original shows remain on tap this year. Documentaries and stand-up comedy shows will be added to Netflix's original content arsenal. As expected, sign-ups for the $11.99/month family plan are "minimal." DVD margins are expected to hold steady in 2013. (shareholder letter)